A Method to Assess Value of Integrated Operations

Integrated operations in the petroleum industry adopt information technology, improve access to real-time data, integrate people and organizations, change work processes, and by doing so, enable better and faster decisions. Consequently, a set of associated business benefits is envisioned. However, the challenge is how to measure them. In this paper, we propose a pragmatic decision analytic method to assess monetary value of integrated operations. The proposed method builds on findings from contemporary literature that emphasizes the need to assess information technology in a broader context of organizational structures and work processes. The method therefore has a built in qualitative assessment of collaborative competence that provides indispensible insights to risks associated with a particular change management project. Yet, it allows for calculating monetary value by integrated formal decision analysis. Feasibility of the method is illustrated by an illustrative case from integrated and collaborative monitoring of offshore operations.